Dave T

Amounts appear in Box 7

T/P's house three foreign students. They receive 1099 Misc. from the three sponsoring agencies for almsot $ 8,000. Not sure where to show this, Line 21 Other Income, Sch. E as rental, or even possbibly Sch C as they do this on a regular basis although not necessarily with a business intent. T/P tracks mileage when taking them to appointments, etc.so I believe this would be an offset to the income but aagain not sure where to report. Thanks - Dave T

T/P is 56, unmarried, no children, receives 1099-R with distribution code '3' which is for disability. Amount received approx. $ 10,000. In addittion he receives approx. $ 16,000 in SS. What I find interesting is this - the pension, because it is disability, flows to line 7 - Wages, and thus he qualifies for $ 280.00 in EIC. Just looks unusual but thats the way it flows when doing the EIC. - Dave T

Coversation at lunch today began with discussing Joe Flacco's new contract and how much of a hit ( no pun intended ) he was taking in taxes. The question then arose whether pro athletes pay state income tax to each state they play it ? Then, presuming that to be the case, do you actually have to play in the game to get taxed? For example, a relief pitcher that comes in in the ninth inning to face one batter does he get taxed and someone who sits the bench the whole game not get taxed? Just curious. Anyone have any pro athlete clients? - Dave T

To Jack from Ohio Thanks so much for the tip on the Submission ID rejection. It worked just as you suggested and I'm grateful to you for the insight. Thanks Again !! - Dave T

Not sure if this should be submited on this forum or the other so I apologize in advance if it is the other. Been very frustrated with a state return (NY) that I've submitted several times only to be rejected with the same error code and not getting much help from the ATX rejection report as to how to resolve. The error code is 901 and says " The IRS submission ID referenced in the State submission manifest must be present in the e-file database." The return was accepted promptly by the Feds so I'm in a quandry. Any help would be much appreciated. - Dave T

Thanks KC and Lion for the response. This board continues be a great help and I appreciate all who participate. - Dave T

Client is a student in Mass but resident of New York State and dependent of his parents in NY. I believe he would be considered a Non-Resident in Mass and would file a return there for the money he made while in school. W-2 shows state as MA of course. The problem I seem to be having is that his earnigs from Mass. are also transferring to his New York State return. Can he claim a credit on his Mass return for taxes paid to New York and if so where does it appear on the MA return? Thanks very much. - Dave T

Yes - normally the tithe would be a Sch. A deduction but in this situation as it is a requirement for his credentials so I think it is a business expense to offset Sch. C income. The other portion of his tithe to his local church is a Sch. A deduciton.

T/P is a retired school district employee and also holds credentials as a minister. His denomination requires that a percentage of his tithe be submiited to the denomination ( not just his local church ) in order to retain his credentials. This tithe is not just on his ministerial income but from all sources of income. In 2012 he only had a few local speaking engagements so income form this was nominal but his tithe to the denomination was greater than this amount. I believe that this tithe is an ordinary and necessary expense and would be shown on his Sch. C but it just seems odd to me that this should generate a loss. Any thoughts? Thank you - Dave T

I know the AOC is for the first four years of post secondary education but came across something that had me second guessing myself. Student starts her Freshman year in 2008 and pays tiuition for first semester. In 2009 pays second semester Freshman and first semester Sophmore year etc. This patterrn continues through 2011 when she pays second semester Junior year and first semester Senior year. Then in 2012 pays second semester Senior year. Thus, even though it is for four year undergraduate degree there have been five payments if you will and therefore no credit for 2012 since she has already taken the credit in the four previous years. Am I correct in this or am I msiing something? Thank you - Dave T

Aside from praying for wisdom ( and patience ), not sure what changed, but the return I submitted with two Ed. Credits that rejected twice, posted this morning. I hadn't made any changes to the return and there was no program update when I logged in this morning so I'm just thankful that it finally accepted. Hopefully this will continue as I have another retrun with two AOC credits to submit. Thanks for the responses.

Yes - I'm wondering if this is part of the issue. If there is more than one credit on the return an error message occurs. I've submitted a return with only one individual on it and it went through fine. Anyone else experienced this? Thanks - Dave T

Correction on previous post amount on line 1 is 4443 not 4453 as I mistakenly typed Thanks

Is anyone having difficulty with e-file rejects on returns with the 8863 Fducation Credits attached? I Updated to 12.8 lst night and then submitted a return with the credit attached only to have it rejected. Here is the scenario: -Two undergrad students, he with 7400 in expenses and she with 1943. - Total on line 30 of each $ 2500 and 1943 resepectively. - Total on line 1 of the 8863 then is $ 4453 Reject error says total on line 1 can't exceed total(s) on line 30, yet is doesn't, it's the same amount. This is frustrating Thanks for any insights. - Dave T

Beginning to get the hang of the client letter with one exception. I can get the Federal and State letters to combine as requested and have the paragraphs desired and in the right place but the problem is with the state component. Even though the retrun will be e-filed it still says " enclosed you will find two copies of the return ... mail to, etc." I have tried checking and un-checcking the box " Let ATX decide" but still comes up with the same verbage. I'm sure I'm doing something incorrectly so any help would be appreciaated. Thank you - Dave T

I know that with the problems people are having with rollovers and the slowness of the program this seems like a rather trivial matter but I have a question that someone might be able to respond to. I rolled over over my first clients return and entered the preparer information. In other years I would then unprotect the worksheet and change the font so that the preparer's signature actually looked like script. I can't find where the unprotect function is located or if it even still exists. Thanks for any assistance. - Dave T

Client who lives out of the area contacted me recently about foster children. She and husband took in a special needs child ( 6 years old ) in July of 2012. Her questions concerned dependency and CTC. In reviewing Pub. 501 I've detemined that the child is a qualifying relative and not qualifying child due to not being in the home for over six monts. ( Miised by a week.) A few other facts: they are not in the foster care businsess and would like to adopt the child. The State agency provides them $40.00/ day for the care of the chlld. My question, in looking at the support worksheet in Pub 501 I can't figure out if this payment from the State is used to calculate the over one half support test? Thanks for any assistance that can be provided. Dave T

Had this happen recently on 199-DIV's that had foreign taxes paid. I too couldn't get it to flow to the 1040 until I entered the country in which the taxes were paid. On the 1099 input sheet there is a drop down box with a list of countries but since I wasn't sure what country(ies) it pertained to I selected OC - Other Country and it flowed perfectly. Perhaps there is a similar box on the 1116. Hope this helps. - Dave T

Yes - I've noticed recently that my New York State returns are printing pg 2, pg 1, pg 4 and then pg 3. Also noticed, although I'm not sure if this is related that even though I created a state e-file, that the authorization document didn't appear on the print menu. - Dave T

Not sure what I'm doing wrong and don't remember having this problem in the past but I've input Foreign Tax from the 1099 Div into Box 6 on the detail worksheet and it's not flowing to line 47 on the 1040. Is there someithing on the 1116 that I need to enter or checck to make it flow? Thanks - Dave T

Taxdan, I just got home and encountered the same problem. I too have avast and got the same error message. Need to get this resolved - I'm falling too far behind as it is. - Dave T

Client serves as a liason for foreign students, taking them to appointments, school contacts etc. In addition they house two of the students providing room and board. Client receives three 1099 Misc. from three different sponsoring organizations. Total involved is approx. $10K. Here are the questions I have regarding this: 1. Would the one 1099 from the organization that is sponsoring the students in their home go on a Sch E and the other two on Sch. C, or all three on Sch. C or is it all line 20 - Other Income, or some combination thereof? 2. Aside from mileage, client didn't track any other expenses. Is there some type of per diem meal allowance that could be used simiilar to that used by Child Care providers? 3. What about utilities and depreciation for the space used? Thanks for all the assistnace on this subject as well as for the wealth of knowledge that is conveyed on a daily basis on this board. Dave T

I know I need to do some research on this but was wondering if anyone might ever have encountered this. Clients adopted three children from the Ukraine in 2011. Expenses had occurred in 2010 and 2011 and adoption became final in May 2011. I know that the children quailfy as dependents and two of the three are under 17 so qualify for Child Tax Credit as well as Adoption Credit. The issue is none of them have a SSN. They became US citizens later in 2011 but as of yet don't have the SSN. I know there is something called an ATIN for adoptees and of course an ITIN but I'm wondering if they will be able to qualify for the items above withour the SSN The parents are in the process of applying but don't know if I can file the return without them. Thanks in advance for your assistance. Dave T

Wife has purchased several items and likes them very much. As to the original topic, I had a Pampered Chef rep. come to me last year wanting their return done ASAP to be able to fill out financial aid forms. I wasn' able to accomodate in their time frame but did look over their info, while they were here. It seems to me I had an issue how Pampered Chef reported certain information. As i recall she had won a number of incentives some nominal but a couple trips as well which I questioned as how the value of these items were determined as they should have been included in income as well.